Arsenal Capital Partners, the New York private equity firm focused on healthcare and specialty-industrial businesses, said that a unit acquired Sasco Chemical Group Inc. Terms weren’t disclosed. Sasco, founded 1948, is the Albany, Georgia, producer of specialty chemicals for the rubber, wood, consumer and medical industries. Arsenal’s polymer-solutions group, which made the acquisition, was advised by Kirkland & Ellis. Twinbrook Capital and Kayne Anderson, the group’s current lenders, provided debt financing for the deal. Genesis Capital LLC was financial adviser to Sasco Chemical.
FOR IMMEDIATE RELEASE
Polymer Solutions Group Acquires Sasco Chemical Group, Inc.
Expands Global Position in Specialty Rubber Additives
NEW YORK, April 28, 2016 – Arsenal Capital Partners (Arsenal) today announced that its specialty polymers and additives platform, Polymer Solutions Group (PSG), acquired Sasco Chemical Group, Inc. (Sasco Chemical), a manufacturer of specialty chemicals for the rubber, wood, consumer and medical industries.
Headquartered in Albany, Georgia and founded in 1948, Sasco Chemical is a leading manufacturer of rubber anti-tack agents in North America with its PolyCoat, TechKote and Sasco Cote product lines. Sasco Chemical has a research and development center in Macon, Georgia, produces more than 1,200 products and distributes them globally.
PSG was formed by Arsenal in June 2015 with the acquisition of Peach State Labs, Inc. (Peach State Labs), a leading provider of specialty polymers and performance chemicals. In February 2016, PSG acquired Flow Polymers LLC (Flow Polymers) a leading manufacturer of proprietary and custom chemical dispersions, process aids and homogenizing agents for tire, automotive, industrial products, wire and cable and plastics markets.
Marc Skalla, President of Sasco Chemical and Rusty Skalla, COO of the Company, issued a joint statement as follows. “The combination of Sasco Chemical, Flow Polymers, and Peach State Labs will continue to build upon the commitment to delivering the best release agents in the industry to our client base worldwide. We are excited to leverage the new platform to continue our global expansion in the anti-tack business. Each individual company brings unique strengths to the group that will allow expanded product offerings to our customers while continuing and strengthening the research and customer service levels that our customers have known.” Both Marc and Rusty Skalla will remain actively involved in continued growth in the new combined organization.
Mike Ivany, President and Chief Executive Officer of Polymer Solutions Group, said, “We are excited to add Sasco Chemical to the PSG group of companies. Sasco’s strong reputation for supplying high value products and unmatched customer service fits well with PSG’s goal of providing value through superior product performance and ongoing customer support. The addition of Sasco further strengthens our position in the rubber additives market and allows us to better serve our existing customers with new products and innovative performance solutions. We are delighted to have Marc and his team join our platform.”
Sal Gagliardo, an Operating Partner in Arsenal’s Specialty Industrials Group, said, “The acquisition of Sasco Chemical builds on PSG’s model of addressing unmet market needs through the development of differentiated technologies and services to solve customer needs. We will continue to pursue acquisition opportunities to expand the PSG platform in existing and new markets and broadening our capabilities to service our customers.”
PSG was advised by Kirkland & Ellis. Twinbrook Capital and Kayne Anderson, PSG’s existing lenders, provided debt financing in support of the acquisition.
Genesis Capital, LLC acted as financial advisor to Sasco Chemical.
About Arsenal Capital Partners
Arsenal Capital Partners is a leading New York-based private equity firm that invests in middle market specialty industrial and healthcare companies. Arsenal makes investments in sectors where the firm has significant prior knowledge and experience. Arsenal targets businesses that have the potential for further value creation, and works closely with management to accelerate growth by leveraging the firm’s industry focus and operational improvement capabilities. Arsenal currently manages $2.6 billion of committed equity capital. For additional information on Arsenal Capital Partners, please visit www.arsenalcapital.com.